November 1, 2018
Tesla has finally turned a corner after a period of sluggish production followed by
Shares in the company reached an excellent 13 percent on Tuesday, October 23, 2018, in anticipation of the promised good news shared by Musk. Long-term critic Andrew Left of Citron Research also helped bump the share prices up by making the announcement that he has changed his outlook regarding the automaker. Instead of criticizing it, Left is now praising its marketing strategies and says it is finding its stride with the production of the new Model 3 by attracting the attention of customers who would normally be interested in Mercedes or BMW models.
“When [Musk] says they’re going to be cash-flow positive, possibly this quarter, I’m not going to doubt it,” said Left in an interview on Bloomberg Television. During the turbulent months in which the CEO of Tesla was viewed in a less-than-positive light, plans to boost the company
In the third quarter of 2018, the auto manufacturer has produced nearly 84,000 vehicles. Many of these are more expensive models. During the final weekend of the third quarter, dozens of existing Tesla owners volunteered at delivery centers to help out. On Sep 30, the CEO said the company was “very close to achieving profitability” and was about to prove those who were predicting the worst wrong on all counts.
As of Oct 23, 2018, Tesla is expected to show a profit for the third quarter. If the automaker fails to do so, it’ll be a surprise, given the amount of effort the company has put forth toward that goal. If the automaker does make a profit, it will only be its third quarterly profit gained since 2013. The company may be able to recoup its costs with the sale of zero-emission vehicle credits to other automakers that need them in order to meet mandates set in certain states. Zero-emission vehicle credit sales are not continuous and occurs in fits and starts. For the first quarter of 2018, Tesla reported $50 million in sales. However, there are none recorded in the second quarter.